YUM! Brands Inc. (NYSE:YUM)

The analysis of financial data over the examined periods reveals notable fluctuations and trends in various liability and equity components expressed as percentages of the total liabilities, redeemable noncontrolling interest, and shareholders’ equity (deficit).

Accounts Payable and Other Current Liabilities

This component generally exhibits variability but maintains a presence between approximately 16.5% and 25%, with a peak around the end of 2015 and early 2016 before declining towards the latest period. Such variation indicates varying short-term obligations relative to the overall financial structure.

Income Taxes Payable

Income taxes payable demonstrate small but fluctuating proportions, ranging mostly between 0.5% and 2.2%, without a clear upward or downward trend. This reflects relatively steady tax liabilities in relation to total obligations and equity.

Short-Term Borrowings

Short-term borrowings show marked volatility. Starting with moderate percentages under 8%, they sharply peak to over 28% around March 2016, then fall back dramatically in subsequent quarters. This indicates episodic increases in short-term debt financing, potentially tied to specific financing needs or strategic capital structuring.

Advertising Cooperative Liabilities

This item remains relatively stable across the periods, hovering between about 0.6% and 1.5%, suggesting consistent advertising-related liabilities without significant fluctuations.

Current Liabilities

Current liabilities as a whole are quite variable but show an overall increasing tendency, especially peaking above 50% in early 2016 before retreating. This pattern corresponds with the observed spikes in short-term borrowings and accounts payable, indicating periods of increased short-term funding and obligations.

Long-Term Debt

Long-term debt shares show variability without a consistent directional trend initially, mostly between approximately 30% and 37%. However, a significant increase is observed starting mid-2016, soaring to 65% and even nearing 87% by the last reported period, indicating a substantial increase in long-term debt obligations relative to the total financial structure.

Other Liabilities and Deferred Credits

This category declines gradually over the period, from around 16% to below 10%, indicating a reduction in these liabilities' relative share of total obligations and equity.

Noncurrent Liabilities

Noncurrent liabilities generally remain near the 45% to 57% range but show a sharp increase from below 50% levels to an exceptionally high 95.5% in the latest quarter. This sharp rise is consistent with the increase in long-term debt, pointing to a shift towards higher leverage or deferred obligations.

Total Liabilities

Total liabilities fluctuate mostly in the 70% to 80% range for much of the observed timeline but experience a steep rise after 2015, reaching over 117% of total liabilities, redeemable noncontrolling interest, and shareholders’ equity (deficit). This ratio exceeding 100% suggests a financial position where liabilities surpass the combined redeemable noncontrolling interest and equity, signifying a potential imbalance in the capital structure.

Redeemable Noncontrolling Interest

This interest remains minimal throughout, generally below 1%, and exhibits a declining trend after peaking around 2012–2014.

Common Stock, No Par Value

The proportion of common stock is insignificant and generally sporadic across reported periods, indicating a very minor share of this category within the total capital framework.

Retained Earnings (Accumulated Deficit)

Retained earnings show an increasing trend initially, peaking over 27% around late 2012 and 2014, followed by a continuous decline ending in a negative value of -15.07% by the last quarter. This descent into negative territory suggests accumulated losses or distributions exceeding earnings, adversely affecting equity.

Accumulated Other Comprehensive Income (Loss)

This component fluctuates between negative and slightly positive values but mostly remains a small negative percentage, indicating minor but consistent unrealized losses or adjustments impacting overall equity.

Shareholders’ Equity (Deficit), YUM! Brands, Inc.

Shareholders’ equity starts around 21%, oscillates somewhat but declines sharply after 2014, culminating in a significant deficit of -18.17% by the last period. This deteriorating equity position draws attention to challenges in maintaining net assets after liabilities and losses.

Noncontrolling Interests

Noncontrolling interests remain stable and low, near or below 1%, indicating minor outside ownership interests relative to the company’s total capital structure.

Total Shareholders’ Equity (Deficit)

Total shareholders’ equity mirrors the previously described pattern, rising slightly in earlier periods but collapsing post-2014 to a pronounced negative balance of -17.54%, consistent with retained earnings and equity deficits observed.

Total Liabilities, Redeemable Noncontrolling Interest and Shareholders’ Equity (Deficit)

This total remains constant at 100%, serving as the baseline for the proportional analyses of the aforementioned items.

In summary, the data reveals increasing reliance on long-term debt and noncurrent liabilities accompanied by a significant erosion in shareholders’ equity after 2014. The dramatic expansion of total liabilities beyond total equity and interests suggests heightened financial risk and potential solvency concerns in the most recent periods. Short-term borrowings and current liabilities show episodic spikes, contributing to increased financial leverage. The company’s capital structure exhibits signs of stress with accumulated deficits outweighing retained earnings and equity components diminishing substantially.